Pakistan out of the grey, once again

The Financial Action Task Force (FATF), the global watchdog for money laundering and terror financing, has taken Pakistan off its 'grey list', jurisdictions subject to increased monitoring. Put on the list in February 2018, Islamabad has since taken steps in line with FATF requirements. India, a member of the group, has agreed with the decision.

The FATF decision comes at a critical moment for Pakistan. Deeply indebted, the economy took another blow with this summer's devastating floods. Being on the grey list made it difficult to procure loans from the multilateral development banks and investment from private companies and other countries. Measures, as detailed in the FATF's two action plans - bringing money laundering and terror financing laws in line with international requirements, maintaining a database of terrorists and terror groups operating on its territory, taking action against designated terrorists - has helped Pakistan itself. The floods apart, the G77 chair, Chinese pressure and the diplomatic outreach by Prime Minister Shehbaz Sharif and others, including army chief General Qamar Bajwa, also helped. As did softening of the US position following Pakistan's support to US counterterrorism operations in Afghanistan. For Sharif, the removal represents a diplomatic victory.

This was Pakistan's third time on the grey list, indicating a predilection to falling off the wagon. India must make this clear to its partners such as the US that keeping Pakistan on the straight and narrow is in global interest. It must help ensure that Pakistan continues to take credible, verifiable, irreversible and sustained action against terrorism and terrorist financing emanating from territories under Islamabad/Rawalpindi's control.